The answer to your question is "The U.S. is undermining an independence movement that is like the American Revolution." If you want more details feel free to ask me..
It means that the party the excerpt is talking about fears that the American ruling party action against the people`s desire for freedom and independence.
Explanation:
The spirits of 1776 are often identified as an intention to seek freedom, liberty independence and the ability to become responsible for their destiny. So the phrase states that the party in topic fear that the American Rulers try to stop that desire of freedom, liberty, and independence. Because that would take the power away from them, and the American Rulers will not want that. Suggesting that the party of concern likes that spirit and wishes it prevails in people, so they can act and take the power away from the Americans.
The answer you are looking for is D.) articles that exaggerated or manipulated events to shock readers.
For example lets say there was a car crash and the people had minor injuries in your town. Later you see on the morning paper that the people suffered terribly from the crash that they had to be flown to a hospital. That is yellow journalism because the event is exaggerated.